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Sales Funnel
How to Create a Conversion Funnel?

[ BLOG ]

Table of contents of the article

What is a Sales Funnel?

A sales funnel is the stages of customer interaction from the moment they first become aware of your brand to the point of purchase, or even repeat purchase. Generally, many businesses operate without one, but having such a simple yet powerful strategic tool greatly enhances the effectiveness of promoting goods and services. Let’s delve into this in more detail.

Stages of the Sales Funnel

So, a sales funnel is essentially the path you have planned for a potential customer towards their first or repeat purchase. You think through every touchpoint, every interaction, to ultimately lead the buyer to purchase your main product and stay with you for the long haul. Let’s examine what the classic stages of a sales funnel are.

Awareness. At this stage, the customer first learns about you and becomes acquainted with your brand as such.
Interest. Here, the customer shows interest in your brand, product, or services, in your advertising message. They do more than just know you exist; they pay attention to you and start to explore what you offer.
Desire. At this stage, the customer begins to feel a need for your product or service. For the first time, they think that purchasing your product might be an interesting idea.
Action. This is where the actual purchase of your product or service takes place.

It should be noted that these are the classic stages of a sales funnel; your specific project may have more. As for the steps, there can be any number within each stage, depending on your promotion method.
example of a facebook text

Steps for Building a Sales Funnel

Create a unique value proposition. A unique value proposition (UVP) is what sets you apart from your competitors; it’s the reason why potential customers should choose you. Develop your UVP and incorporate it into the advertising message you plan to broadcast to your audience.

Identify customer interaction channels. Social networks, email marketing, offline marketing, media advertising, etc. - there are numerous touchpoint channels to choose from. Their selection depends on the marketing strategy you have developed.

Stir up interest and prepare to handle objections. Potential customers may directly ask you questions about your product or service, comparing you with competitors. It’s better if you prepare additional materials, such as a business proposal, price lists, brochures, case studies, reviews, etc. Even better, have a sales script that addresses the most common objections.

Directly close the deal. Ensure the quality of the product or services provided so that the customer has no desire to return the money. In this case, the more satisfied your customer is with their first purchase, the sooner they will decide to make a repeat purchase.

It is important for you to understand that a sales funnel is a strategic plan for winning over a customer, where each stage is equipped with tactical techniques. For example, in your funnel at the acquaintance stage, you might include launching targeted and contextual advertising, as well as purchasing advertising from bloggers. At the interest stage, you could add interactivity and offer participation in a contest. To further stimulate interest and create demand for your product, consider hosting a free webinar.

What Sales Funnel Analytics Will Tell You

After the funnel is created and all processes are launched, it is crucial to analyze the results. Here's how you can interpret the stages of the funnel:

Are there problems at the acquaintance stage? For instance, you might notice that a large part of the audience drops out at the first stage of the funnel and shows no further interest. This could be because you have incorrectly identified your target audience or are broadcasting your advertising through the wrong channels.
Are there problems at the interest stage? If so, the issue might lie in your unique value proposition. Perhaps your offer is not attractive enough for your target audience, and you need to refine it. Another issue could be that your offer is good, but you are not targeting it to the right audience.
Problems at the desire or purchase stage? Errors might be in communication. Ensure that sales managers quickly and correctly respond to potential clients' inquiries and process requests for purchasing products or services. Also, if you have an automated payment system, check that the technical side of the payment process is simple, clear, and reliable for customers.
Problems at the stage of repeat sales or upselling? The reason might be that you are not fully conveying the value of additional services. Or perhaps the customer was not satisfied with their first purchase and decided not to return. There can also be a mismatch between what the customer expected based on your advertising and what you can actually deliver.

How to Calculate Sales Funnel Conversion

example of a facebook text
To understand how effectively your sales funnel is working, you can calculate the conversion rate of each of its stages. Conversion here is the percentage ratio of potential results to actual outcomes. In simple terms, if you launch an advertisement to 1,000 people, and 100 of them visit your website, then the conversion rate of the first stage is 10%. Of these 100, if 50 leave a request, thus showing interest, the conversion rate of the second stage is 50%. Out of these 50, if 20 make an actual purchase, then the conversion rate for this stage is 40%.


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